Is Guaranteed Issue Life Insurance Right For Me?

Know for certain whether you are uninsurable

In some cases this can be easily determined, but in others cases it is not so easy to tell.

Underwriting might seem like an exact science, but it is really more of an art, especially with borderline cases.

If you haven't already applied for health coverage and been declined, if you or your insurance agent thinks your situation is questionable, the thing to do is to apply for as many insurance companies as you can at once.

Once you're declined, however, this information is submitted to what is called the Medical Information Bureau or MIB for short.

The MIB is an organization that works on behalf of insurers and stores the information that fill out when completing and application for medical insurance.

The point is that once you are declined, this is all that companies may look at after the fact. Before the fact, however, they have to evaluate your case on its own merits or lack thereof.

Applying to several different companies at once greatly increases your odds of getting covered if you are borderline.

OK, I was declined for life insurance benefits, now what?

Your state's high risk pool (if there is one, and if it is taking new applicants)

You do still have several options.

The first might be your states life insurance risk pool which offers coverage to people who have been declined insurance in the past.

State risk pools are not aide programs, but they are subsidized by a particular state in many cases.

Often it is Blue Cross which administers the program so you generally have a good selection of providers.

Unfortunately, not all states have a high risk pool, and those that do usually impose a waiting period of several months (each state is different).

Guaranteed Issue Health Insurance

A person can get guaranteed issue, irrespective of the medical conditions, when used with a life coverage plan.

You can apply for guaranteed issue plans once you become eligible for HIPAA.

There are certain guidelines which need to be followed. You should provide accurate information to make your case stronger.

There may be a waiting period of up to 90 days (Group life coverage).

Guaranteed issue life coverage is relatively popular in U.S. It should be considered as one of the alternatives for those who have had difficulty getting life insurance the traditional way, although premiums are usually higher.

Group Insurance

If you own a business with two or more employees (it can even be one employee in some states like Arizona) you may be able to qualify for group life coverage. You will probably have to pay a lot of money for it.

Insurance companies can ask few questions to determine the rates. If you have a poor health history, they will still offer coverage, but, again, it is likely to be quite expensive.

Keep in mind that you cannot receive life insurance if you've formed a company with this being your primary objective.

Other options for the uninsurable?

There are some other options. There are plans now sold in the insurance market called guaranteed issue life insurance.